3M to pay 10B
Industrial giant 3M has reached a $10.3 billion settlement with cities and towns across America, over claims that drinking water was contaminated by potentially harmful “forever chemicals”.
3M traces its roots back to a small mining venture in 1902, called the Minnesota Mining and Manufacturing Company. Since then, the company has grown into an industrial giant with more than 60,000 products including consumer brands like Scotch (tape) and Post-It (notes).
It's PFAS products, substances used in a range of consumer products including nonstick cookware, firefighting foam and some cosmetics, that are the source of the issue. The company has pledged to stop making and using PFAS by the end of 2025.
Although it’s an eye-watering total sum — equivalent to nearly 2 years of the sprawling company’s profits — 3M's share price is actually up ~2% this morning, perhaps indicating some investor “relief” that this legal claim is now in the company’s rear view mirror. The money is to be provided over a 13-year period to test for and treat any contamination from PFAS. The company did not admit any liability with the settlement.
Earning their moniker because they don’t easily break down in nature or in the human body, forever chemicals have been linked to a variety of health problems, and PFAS lawsuits have been piling up against 3M and other companies for years (one story even became a Hollywood blockbuster called Dark Waters). 3M alone is reported to be facing some 4,000 lawsuits over the issue.
